fiera milano group

Fiera Milano Group Strategic Plan 2021-2025

Milan, February 23rd, 2021

CONN.E.C.T 2025Connections, Exhibitions, Community, Transformation

Agenda

01. Fiera Milano: initial setting and recent performance

02. Market and competitive scenario

03. Fiera Milano's strategic positioning and guidelines in the New Normal

04. Fiera Milano's 2021-25 targets and projections

05. Back-up – Strategic framework

06. Back-up – ESG Strategy and actions

1

01

Fiera Milano: initial

setting and recent

performance2

Spin off and listing

Ente Autonomo Fiera Milano spins off Fiera Milano SpA and

goes public

Milan, February 23rd, 2021Fiera Milano Group – CONN.E.C.T 2025

Fiera Milano shows a history of growth of more than 100 years

Foundation

Eight entrepreneurs organize the first exhibition in Milan; in 1922, EnteAutonomo Fiera di Milano is set up

New site opening

Fiera Milano exhibitionsite in Rho Pero opens

Development

Launch and growth of the main exhibitions

1920 1950-70 2000-02 2005

Internationalization

China, South Africa, Brazil (incl. JV with Deutsche Messe)

2008-12

EXPO Milano

Fiera Milano as main partner for Expo 2015

2015

Turnaround and

relaunch

Internal re-organization and business turnaround

2018-19

Source: Fiera Milano, Roland Berger analysis

3

Fiera Milano is currently active in 4 businesses

Direct management of one of the largest and most

modern convention centers in Europe, MiCo

Congresses

Host of third party exhibitions, providing space to Italian and

International organizers in Milan Venue

Venue

EUR 72 m

[26%]

EUR 40 m

[14%]

Provision of services to organizers, exhibitors and

visitors (e.g. stands set-ups, catering, media)

Services

EUR 79 m

[28%]

Direct organization of proprietary exhibitions,

providing space to exhibitors in Italy (mainly

in Milan Venue) and abroad

Exhibitions

organization

EUR 89 m

[32%]

Re

ve

nu

es

2019


4Fiera Milano Group – CONN.E.C.T 2025 Milan, February 23rd, 2021

15 32106

10

2017 2018 2019 20201)

Fiera Milano is the leading Italian operator in the Exhibition industry – Covid-19

crisis in 2020 interrupted 2017-19 growth trend

256 247 280

74

+4%-74%

Key highlights

• 2017-19: significant

profitability improvement

mainly linked to cost

efficiencies; constant net

sold area

• 2020: abrupt interruption

of growth trend, with most

events cancelled due to

Covid-19 crisis – 74%

revenue reduction and

sharp reduction in

EBITDA, down to EUR

10m

Covid-19

In line with Italian market trend

IFRS 16 not applied before 2019 48IFRS 16 impact [m] 46

No IFRS 16 post IFRS 16

Revenues [EUR m]


5

EBITDA [EUR m]

1) Preliminary


02

Market and competitive

scenario

6

After Covid-19 impact, in 2020 Exhibition market dropped by 68% in revenues

compared to 2019

2019

26.1

2015 2020E2016 2017 2018

24.2 25.327.5 28.4

9.0

+4% -68%

USA -72%

CCG

China

Italy

UK

Germany

Russia

France

Brazil

Hong Kong

Mexico

India

Turkey

-92%

-72%

Indonesia

-51%

-68%

-75%

-69%

-74%

-60%

-85%

-67%

-72%

-54%

-81%

Estimated decline in mkt size –Main 14 countries [2020 vs '19]

Emerging market Developed market

Exhibition market size – Main 14 countries [2015-20E; USD bn]

Source: AMR International, Fiera Milano, Roland Berger analysis


Main industry reports highlight different recovery paths for different

geographical areas, with '22 still below '19; Italy with slower expected recovery

Delta market % 2019-22%

Key highlights

• Overall assumption for

2022 is that pandemic

crisis will be contained

and that most of events

will be running

• Individual recovery

rates affected by

country-specific drivers

• Lower expected GDP

recovery and high

dependence on SMEs to

drive slower Italian

ramp-up

FranceTotal UKUSA Germany Italy Hong Kong

Singapore

-22%

-20%

-21% -21% -34% -42% -32% -22%

2019 2020 2022

Developed Markets

Emerging markets

Source: AMR International, Roland Berger analysis

Expected market trend in 2022 vs. 2019

8

MexicoBrazilRussiaCCGChinaTotal India Indones.

-22%

-14%

-42% -25% -24% -21% -27% -28%

Fiera Milano Group – CONN.E.C.T 2025 Milan, February 23rd, 2021

Considering recent context evolution (i.e. vaccine release), a faster ramp-up

can be expected for Italy

0.6

0.0

2017 20212019 2020 2022

0.8

1.0

0.2

0.4

-25/30%

-42%

Market scenarios – Hard case vs. Mild case

No travelling restrictions / social distancing measures in '22

Mild case

Hard case

Key highlights

• Depicted scenario (-42%)

represents a hard case

assuming depressed

international travel and

social distancing enforced

through 2022

• Considering latest

evolutions (e.g. vaccine

release), a milder case is

considered

• Specific players'

performances driven by

business model

(underlying industries,

international exposure, ..)Source: AMR International, Fiera Milano, Roland Berger analysis


Exhibitions market rebound to pre-Covid levels expected in '24 for Europe and

US, possibly '23 for Asia – Global congresses recovery expected already in '23

Degree of recovery to pre-Covid levels:

Key highlights

Europe & US:

• No events in Q1 2021,

expected recovery start

in Q2

• No international

exhibitions in Q2

• Recovery in events and

attendance in Q3-Q4

Asia:

• Progressive recovery in

Asia in Q1-Q2 and in H2

2021

• Limited international

attendance vs. pre-Covid

levels for 2021Low High

2021

Q1 Q2 Q3 Q4 FY FY FY

2022 2023 2024

…

…

Exhibitions sector Outlook Market interviews feedback

EU & US

China

Pre-Covidlevels

Pre-Covidlevels

Congress segment to globally recover earlier vs. fairs, reaching pre-Covid levels already in 2023



COVID-19 outbreak driving emerging trends for the exhibition industry

• Ensure consumer safety with respect to events and gatherings

• Technological investments in venues to follow safety regulations

• Vaccine release and distribution in Q1-Q2 2021 to limit virus spreading

Health & safety as priority

Government financial support

Regulatory environment

Hybrid & digital events

• Social distancing measures and restrictions to international travel expected to

soften after vaccine release

• Government support and financial aids to sustain the exhibition industry

• Supporting venues highly strategic to the recovery, as the exhibition value chain is

critical in terms of potential GDP creation

• Increased importance of Digital in the exhibition industry after Covid-19 crisis

• Expected role of Digital as complementary solution within a Phygital environment;

substitutive role less likely in the long term

Source: Press review, Mergermarket, Roland Berger analysis, Fiera Milano


Selection of key players in the Exhibition Industry

Source: UFI, AUMA, Statistics Report Emeca 2018, Roland Berger analysis, Fiera Milano

1) Based on 2019 exchange rates: 1 EUR = 0.88 GBP, 1.12 USD); 2) Calculated as aggregate of Informa Markets, Connect and Tech BUs; 3) Considering only Rho venue; 4) Calculated evenly weighting international revenue share 2018 (50% international revenues on total = 100), avg. % international exhibitors 2018 and avg % of international visitors 2018

Revenues[EUR m, 2019]

736474 413 379 346 280 219 196 187 179 135 105

1,4471)

Info

rma

Exh

ibitio

ns

2)

GL

Eve

nts

Ree

dE

xh

ibitio

ns

Me

sse

Fra

nkfu

rt

Me

sse

Mu

en

ch

en

Asce

ntia

l

Em

era

ld

Ko

eln

me

sse

Dusse

ldo

rfM

esse

Deu

tsch

eM

esse

Fie

ra M

ila

no

Hyve

Plc

1,173

Fir

aB

arc

elo

na

Bo

log

na

Fie

re

IFE

MA

Ma

dri

d

IEG

Rim

ini

RA

IA

mste

rda

m

Ve

ron

a F

iere

2,2601)

4741)3221)

2521)

Main domestic venue capacity [gross sqm '000]

n.a. n.a. n.a. 394 200 n.a. 284 249 392 n.a. 345 3) n.a. 240 200 200 129 78 152

Internationa-lization level 4)

Share of orga-nized exhibitions n.a. n.a.

n.a. n.a. n.a. n.a. n.a. n.a.n.a. n.a.

Global organizer

Venue player

Fiera Milano has one of the largest venues in the exhibition market, but with

lower levels of internationalization and direct organization of events


03

Fiera Milano's strategic

positioning and guidelines

in the New Normal13

Fiera Milano aims at becoming the leading reference platform in the exhibitions

and congresses business in the New Normal

Mission

PurposeBe the leading smart hybrid platform for innovative, sustainable and business-relevant events, with a European Hub and a Global reach

Creating a world of opportunities for businesses and individuals through our European Hub in Milan and beyond and our global network

Source: Fiera Milano, Roland Berger


To achieve this goal, Fiera Milano is on the verge of business model

transformation

Target products

Geographies

Key partners

Channels

Key assets

Cost model

Overall business model

> Organizers of hosted exhibitions > Organizers + Service providers + International partners

> Physical venue as main core asset > Physical venue + Digital platform + Service partners

> Venue valorization > Venue valorization + Value-added services

Current state Ambition

Venue for business matchmaking among exhibitors and visitors through organized or

hosted events

Italy International Physical Digital

Leading hybrid platform for innovativeand effective events, with a European

Hub and a Global reach

> % Fixed (e.g. Venue) > % Variable (e.g. Partner) > % Fixed > % Variable


15

(B2B) (B2B and Corporate events) (B2C)

Revenue model

Core competencies

> Venue management + Event scouting > Venue management + Event scouting + Event management & organization + Digital


Exhibitions

organization

Services

& contents

platform

Congresses

Enablers

Venue

HR Transformation & Organizational Alignment

Commercial and Product Development excellence

Investment on the Venue and continuous improvement

Digital transformation


16

Strategic FrameworkKey pillars


Exhibitions

organization

Services

& contents

platform

Congresses

Enablers

Venue






17

FMG strategic plan is based on business excellence, scaling and

transformation around the 4 main business areas


Venue

Strengthen portfolio of

organized exhibitions

by focusing on

internationalization

and new concepts

Capture full potential

of both traditional and

digital services

through a platform-

driven business model

Consolidate and expand

congresses positioning

by leveraging the venue,

developing strategic

alliances and being the

enabler for phygital

events

Exhibitions

organization

Services and

contents platformCongresses

Fiera Milano Group defined strategic goals for each key business area


18

Secure and enhance

hosted exhibitions and

venue occupancy

through strategic

alliances with organizers

and by attracting new

exhibitions


Value proposition

Fiera Milano to develop a holistic network of high-end 3rd-party suppliers of services and connecting

them to clients by leveraging a "phygital" business landscape

CLIE

NT

S

Customer accessServices offering

Data sharing & key input to improve offering

OF

FE

RIN

G

Partner data & services

> Exhibitors

> Buyers

> Organizers

> 3rd-party suppliers of value-added services

PROGRESSIVE EXTENSION

Traditional services

(captive and open market)

Digital services

Contents community

Partners for digital services (e.g. Tech companies)

Partners for traditional services (e.g. Designers)

Partners for content services (e.g. publishers)


19

PLATFORM

Key pillars

Business model

Move from a traditional silos-driven business model to a one-stop-shop platform-driven business

model through physical & digital touch points and by leveraging a flexible and scalable model

Services & Contents platformCreate and leverage a one-stop-shop platform-driven business model

Services & Contents Platform

Details in following slides


Exhibitions organizationStrengthen current portfolio Increase size,

relevance and attractiveness

Partnerships with national/ international leading players

Re-positioning and scale-up

• Recover performances and grow own exhibitions; example: exploit Host's international positioning to develop partnerships with leading players involving TuttoFood (focus on scale) and Homi (focus on exhibition repositioning)

Internationalization

• Increase share of international exhibitors/ buyers in Italy

• Become the reference Made-in-Italy global platform

• Foster international geo-cloning of key events in most attractive global markets

New Concepts

• Launch new (co-)organized B2B exhibitionsin attractive and anti-cyclical market segments (e.g. Life science, Greentech, E-business) and B2C exhibitions


20

1) Example; framework applicable to other sectors

Re-positioning and scale-up framework1)


VenueMaximize venue exploitation

Exhibitions organization

Internationalization (international exhibitions attracted to Milan, recruiting

of international exhibitors)

Services (traditional and digital)

Occupancy

Venue

Increase venue occupancy/ exploitation particularly in low-volumes environments/ periods also leveraging development on services, exhibitions organization and internationalization

Key objective

Develop alliances to consolidate

portfolio (e.g. simultaneous and co-

located combination of leading events

in strategic industries)

Main initiatives

Support Hosted exhibitions'

performance recovery/ improvement

(e.g. roadshow-support, management

of administrative and sales offices)

Scouting and attraction of new

exhibitions (e.g. international

exhibitions, B2C events)

Implement safety measures to attract

visitors and buyers in the New Normal


21

FM will also leverage its competencies in Venue

management to provide services to other Venues


CongressesExploit state-of-the art congress center to foster

FM's growth path and enhance positioning

FM to become the main leading congress center in Europe by leveraging a state-of-the-art venue

Credits: Filippo Ferrarese

Main initiatives

Bring into the market a reconfigured integrated, safe and sustainable venue to attract world-class events

Consolidate and reinforce Milano City

Convention Bureau in collaboration

with local institutions to promote Milan

as a top-EU destination

Offer state-of-the-art digital

technologies (e.g. HD video recording

and streaming) to enable the Phygital

congress

Collaborate with other national and international venues for Joint Business Development


22Fiera Milano Group - Strategic Plan 2021-2025 Milan, February 23rd, 2021


23

Realize and exploit transformation

Excel, scale and prepare for transformation

Bu

sin

ess A

rea

s

Strategic phases


New concepts: expand into attractive segments (B2B and B2C)

Strengthen international positioning

Strengthen portfolio of organized exhibitions

Congresses

Consolidate and develop positioning in key markets Expand MiCo's venue integrating FieraMilanoCity

Become an enabler for phygital congresses

Improve sustainability and safety to be partner of choice Collaborate with other venues for Joint Buz. Development

Services & contents platform

Enhance penetration in traditional services

Develop digital services offering and build the platform business model

Build and animate sector communities

Venue

Implement safety measures to attract visitors and buyers in the New Normal

Support Hosted exhibitions' performance recovery / improvement

Develop alliances to consolidate portfolio Ensure and increase exploitation of the venue

In a 1st strategic phase, focus on business excellence, scaling-up and on

preparing for business transformation, that is then realized in a 2nd phase


Exhibitions

organization

Services

& contents

platform

Congresses Venue


24

HR transformation, Commercial & Product Development excellence, digital

transformation and investment on the venue are key enablers to meet the ambition

Exhibitions

organization

Venue

Enablers






Key strategic enablers related to evolution of resources / competencies,

processes, digital and physical infrastructures



Investments on the Venue & continuous improvement


> Deploy the right team and

competencies to meet the

ambition

> Set the right rules of the

game

> Enable the platform

business model and

digital services

> Propose a top quality,

efficient and sustainable

venue

New Roles (e.g. Digital/

Business Transformation)

New Resources (e.g. Digital)

Integrated commercial

processes

Customer-centric approach

State-of-the-art systems

(e.g. CRM, Finance, etc,)

Fiera Milano Platform

Data Hub and analytics

Network 2.0 (Smart

cameras, WiFi renovation)

Photovoltaic system

Continuous improvement

Training (e.g. market

orientation, product dev.,

digital)

KPIs and incentives

≈ EUR 90-100 m

(CapEx '21-'25)

≈ EUR 10-15 m

(CapEx '21-'25)

Dedicated resources and skills alignment

(Organic development)

Backed by Fondazione Fiera MilanoBacked by Fiera Milano Group

Enablers and Goals

Key aspects


25

Including resources for

business experimentation


Fiera Milano has already developed advanced solutions to be launched in '21

Organizer portal1

Exhibitor portal2

Fitter portal3

Exhibition website4

eXpo Plaza5

Exhibition App6

Digital signage7

Totem8

Smart grid9

Phygital touch-points

single portal to manage all services and exhibitor/ buyers' needs

single portal to manage all exhibition-related services

single portal to manage end-to-end stands set-ups

visitors/ buyers' website with a dedicated reserved area

Smart catalogue also for transactional deals among exhibitors-buyers

Dedicated App to group all services (e.g. Smart-lunch, Wayfind.)

set of dynamic and interactive ledwalls for organizers/ exhibitors

Phygital info-points with interactive services for buyers/ visitors

Holistic tracking system for geo-location services and data analytics

Fiera Milano platform

• Integrated offering of advanced digital solutions to re-design the customer journeythrough

• Digital and physical touch points

• A scalable and flexible business model



50%

Operational excellence

Enhanced customer

experience

15%

Safe and Smart District

25%

10%

Sustainability and innovation

Total investments Fondazione Fiera Milano

2021-25

Total investments Fiera Milano

2021-25

Total investments

2021-25

≈ 25

90-100

115-125

≈ EUR 90-100m investments on the venue backed by FFM together with EUR ≈ 25m

by Fiera Milano – Focus on Digital, Sustainability, Ops Excellence and Customers

CapEx plan [2021-25; EUR m]

Investments on the Venue Backed by FFM

Incl. EUR ≈ 10-15

m of digital

transformation



Sustainability is a key pillar of the entire strategic plan where Fiera Milano is

strongly committed with specific measurable goals for each ESG dimension


28

Exhibitions

organization

Services

& contents

platform

Congresses Venue

Exhibitions

organization

Venue

Enablers






FMG committed to pursue ambitious sustainability goals, responsibly creating

value for customers and industries, for its people and for communities

Source: Fiera Milano, Roland BergerNote: 1) Supply Chain Management

Environment People/ Human Capital

Social Fighting Corruption Human Rights and Sustainable SCM1

Key ESGDimensions

SDGs

GOALS > Develop

strategic

management of

environmental

sustainability

issues to

minimize the

Group's impact

> Enhance human

capital

> Protect the

health and

safety of workers

and all people in

Venues

> Promote

diversity and

equal

opportunities

> Promote

sustainability

culture into the

business

> Promote social

and economic

development

> Promote quality

and customer

satisfaction

culture

> Develop and

enforce policies

to fight active

and passive

corruption

> Prefer suppliers

fulfilling ESG

criteria

> Continuously

combat

undeclared and

irregular work

> Optimisation of

the procedural

framework


04

Fiera Milano's

2021-25 targets

and projections30

In '25, FMG expected to achieve EUR ≈ 290-310 m revenues and EUR ≈ 110-120

m EBITDA; net cash projected to a range of EUR ≈ 75-85 m by '25

Key financials 2019-25 – Overview Remarks

• Exhibitions assumed to restart in

Q2 2021, assuming successful

containment of global

pandemic

• In 2021, most of events

traditionally held in H1

postponed to H2; since 2022,

exhibitions calendar planned to

follow traditional/ pre-covid

scheduling

• Fiera Milano expected to

overachieve 2019 EBITDA in

2025

• NFP projected to improve from

a net debt of EUR 24 m in 2020

to a net cash in the range of

EUR 75-85 m in 2025

Source: Fiera Milano

31

280

74

20212019a 20203) 2025

290 – 310

180 – 200

106

10

2019a 202120203) 2025

40 – 50

110 – 120

(68)

24

20203)2019a 2021

(75) – (85)

2025

5 – (5)

Revenues [EUR m]

EBITDA1)

[EUR m]Net Financial Position2)

[EUR m]

Note: 1) EBITDA values incorporate impacts of IFRS 16 (not including impact of venue rentals); 2) NFPs are calculated excluding impacts of IFRS 16; 3) Preliminary values


Digital transformation and focus on services are key drivers to overachieve

2019 EBITDA in 2025 despite an expected reduction in sold area

EBITDA1) and Sold Area trend 2021-2025

[EUR m, SQM m]

Remarks

• Continued recovery over the

period 2021-2025

• Expectation of a like-for-like2)

contraction of sold areas Vs.

2019 by 42% in 2021 and by

12% in 2025

• Digital transformation and

focus on services as key

drivers to protect and enhance

revenues per sqm and to

recover profitability in spite of

volume contraction


32

106

20222019a

40 – 50

20252021 2023 2024

40 – 50

85 – 95

65 – 75

110 – 120

1.0 1.0 1.4 1.2 1.3 Soldarea

1.5

Note: 1) EBITDA values incorporate impacts of IFRS 16 (not including impact of venue rentals; 2) comparison performed considering average contraction in sold areas of exhibitions held in 2019, 2021 and 2025


Exhibition restart in September vs May 2021 would mainly impact 2021

revenues and EBITDA and cumulative cash generation

Key financials 2021-25 – Alternative scenario


33

Revenues [EUR m]

EBITDA1)

[EUR m]Net Financial Position2)

[EUR m]

Note: 1) EBITDA values incorporate impacts of IFRS 16 (not including impact of venue rentals); 2) NFPs are calculated excluding impacts of IFRS 16

2021 2025

180-200160-180

May Sept

2021

40-50

2025

35-45

2021 2025

5-(5) 10-0

(75)-(85)

(70)-(80)

290-310 110-120

Exhibitions restart in:


Additional opportunities have been identified and could be leveraged by FMG

to gain full potential; potential risks mainly coming from exogenous factors

Potential EBITDA impact

M&A

Commercial agreements/ key partnerships in exhibition sector

New organized exhibitions/ new concepts/ B2C

Restructuring/ Organizational alignment

Slower than expected market recovery

Increased competition (price reduction, loss of exhibitions)

Upsides / Opportunities

Downsides / risks

Low impact High impactSource: Fiera Milano, Roland Berger analysis


On top of financial targets, FMG set specific ESG targets

Actual 20191) Target 2025

12% 50%Environment

People & Human Capital

Social

Human Rights & Sustainable SCM

ESG Dimension KPI

> % electric energy from renewables

> % employees included in performance and leadership management (PLM) with at least one ESG goal

> % employees with digital competencies

> % of qualified suppliers2)

selected also with ESGdimensions

100%

100%

75%

20%

Note: 1) 2019 figures related to FM S.p.A. and companies fully consolidated; 2) Suppliers of goods and services with highly sustainable impact


35

New

Milan, February 23rd, 2021

New

Fiera Milano Group – CONN.E.C.T 2025

FORWARD-LOOKING STATEMENT

37Fiera Milano Group - Strategic Plan 2021-2025

• This document has been prepared by Fiera Milano SpA solely for information purposes and for use in presentations of the Group. The information contained herein has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein.

• None of the company, its affiliates, or its representatives and advisors shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document.

• This document includes forward-looking statements. These forward-looking statements express current expectations and projections about future events, involve predictions and are subject to a number of factors that may influence the accuracy of the statements and the projections upon which the statements are based. Prospective investors are cautioned not to place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in many cases, beyond our control. In light of these risks, uncertainties, and assumptions, the forward-looking events discussed in this document might not occur and no assurance can be given that the anticipated results will be achieved. Actual events or results may differ materially as a result of risks and uncertainties facing Fiera Milano and its subsidiaries. Such risks and uncertainties include, but are not limited to increased competition and regulatory, legislative and judicial developments that could cause actual results to vary materially from future results indicated, expressed or implied in such forward-looking statements. Moreover, any statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future.

• More specifically, our forward-looking statements have been defined while economies, sectors and communities are being hit by the aftermaths of one of the most severe global outbreak of modern history, connected with the start of COVID-19 pandemic in early 2020.

• Within this context, our statements are supported by Roland Berger analysis on the likely evolution of general and business environment

• We believe that global pandemic will be contained in the course of 2021 thanks to massive deployment of available vaccines; as a result, we believe that physical exhibitions will start to be held again from Q2 2021 and that volumes will progressively recover to pre-COVID levels by 2024-2025.

• This document does not constitute an offer or invitation to purchase or subscribe for any shares and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.

• The Manager responsible for preparing the company’s financial reports, Marco Pacini, declares, pursuant to paragraph 2 of Art icle 154-bis of the Consolidated Law on Finance, that the accounting information contained in this document corresponds to the document results, books and accounting records.

Milan, February 15th, 2021

05

Back-up –

Strategic Framework

37

38

FM to increase value capturing along the value chain thanks to both traditional

and digital services through a platform-driven business model

Develop digital services offering and build the platform business model

> Identify and prioritize customer needs by developing an attractive digital services offering

> Move from a traditional silos-driven business model to a one-stop-shop platform-driven business model by matching clients demand with a broad range of value-added services provided by 3rd-party partners

– through physical and digital touch points

– by leveraging a flexible and scalable model

Build and animate sector communities

> Develop a holistic community ecosystem where FM becomes a recognized reference player and the main orchestrator in specific sectors (e.g. Food and Hospitality)

> Content creation (webinars, sector analyses, …) and business facilitation (networking, matchmaking, …) are key pillars to maintain the community highly (e.g. # unique visitors) and continuously (i.e. all over the year) active

> Enlarge and improve FM value capturing along the value chain by offering additional high value-added traditional services, mainly through 3rd-party partners, and lowering the focus and resources in low value-added services

> Preliminary focus on stands set-ups, in particular on customized stands

Enhance penetration in traditional services

Realize and exploit transformationExcel, scale and prepare for transformation

Strategic phases




Traditional servicesIncrease value capturing along the value chain

Venue

rental

≈ 20 %

Stand

set-ups

≈ 20-25%

Freight

logistics

≈ 3%

Media and

Communication

≈ 20%

Hospitality,

room and

board

≈ 15%

Passengers

transport

≈ 10%

Current Focus

Stand

staff

≈ 5%

Source: Fondazione Fiera Milano, Fiera Milano, Roland Berger analysis

Future developments

Average exhibitors' spending by service category [2019; %]

39



Mix of digital services differentiated depending on ultimate needs addressed by each specific exhibition

(E.g. transactions-driven, information-driven, entertainment-driven)

Note. 1) % on area revenuesSource: Fiera Milano, Roland Berger

40


Virtual / hybrid events

solutions

Hybrid Data &

Information solutions Transactional solutions1 2 3

Digital services: key axes Ambition : 15% incidence on Revenues1)

• Digitalization of traditional services

and increased functionalities for

hybrid events:• Exhibitors/ Organizers portals• Exhibition's websites & Adv.• Business matching• Virtual rooms/ booths• Digital signage• Connectivity• Mobile APP• Digital payments• ….

• Development of new "pure digital"

services such as Intelligence services:

• Data Analytics

• Trend barometer

• Development and intregration of digital

contents within FM platform

• Interviews

• Webinars

• Sector analysis

• …

• Integration of transactional solutions

within Fiera Milano platform to allow

direct product procurement

• Enabled by partnerships with digital

marketplace providers (no make)

Digital servicesCapture full potential from digital services


Contents communityCreate and animate an active community around

Fiera Milano ecosystem through contents

Exhibitors

Organizers

Audience/ partners

Visitors/ buyers

Strategic guideline

Fiera Milano to develop a holistic community ecosystem living beyond the fair, both physically and digitally

Key pillars

Contents Business facilitation Connection

Ind. associations

Content providers

Opinion leaders

Partners


41



42

To boost exhibitions organization, FM to focus on strengthening current

portfolio, internationalization and new concepts

Strengthen international positioning

> Attract international visitors and exhibitors to current exhibitions and attract new international exhibitions

> Definition and development of an internal FM organizational structure focused on increasing international exposure

> Focus on few projects only with sizeable ambition targets in attractive geographies and strategic industries as key success factor for FM

New concepts: expand into attractive segments (B2B and B2C)

> Development of new B2B event concepts in sectors with positive expected outlook in 2020-25 to exploit business opportunities (Life Science, E-businessand Green Tech are first potential targets)

> Development of B2C co-organized events targeting consumers, also to enhance and increase exploitation of the venue. Combination of exhibition and experience/ entertainment (e.g. sports, live performances, food, etc.) as potential concept to be further investigated

> Reposition suffering exhibitions (e.g. Homi) and scale-up exhibitions not yet at full potential (e.g. Tuttofood) by leveraging Hosts' point of strengths through partnerships with leading players

Strengthen portfolio of organized exhibitions


Strategic phases




Fiera Milano outgoing internationalization strategy is focused on few projects

but with sizeable targets in attractive geographies and strategic industries

Selected

projects

• Attractive markets

• Strategic industries

Geographies / IndustriesStrategic goals

International projects fulfilling key goals

Long list of international projects

• Prioritization of projects

fulfilling key goals (e.g. support

to Made-in-Italy, increase of

international exhibitors and of

international brand awareness of

own exhibitions, attraction of

international exhibitions to Milan)

Size

Short list of International projects in attractive

geographies and industries

Key selection criteria

1st gate 2nd gate 3rd gate

Sizeable international projects in attractive

geographies and industries

Selection of projects

only with sizeable

ambition targets e.g.

✓ EBITDA @ Full

potential >= EUR 5 m

Food &

HospitalityHome Machinery


43



Development of new sectors / concepts is the result of a structured process,

aiming at identifying attractive opportunities

Monitoring and analysis of sectors

Assessment and prioritization of sectors

Feeding the pipeline of opportunities

> Coherent with megatrends (e.g.ageing population, sustainability, digital)

> Supported by economic stimulus (e.g. Next generation EU)

> Positive outlook

> Large SMEs base in Italy

> High value added/ profitability

> Export-oriented

✓

✓

✓

✓

✓

✓

Life science

Silver age and elderly care

Greentech

Fintech

E-business

Robotics, automation, Industry 4.0

Aerospace


44



45

Enforcement of safety measures, improvement of hosted exhibitions,

promotion of alliances and increasing venue exploitation as key actions

Support to Hosted exhibitions' performance recovery / improvement

> Take over the management of administrative and sales offices, in charge of fairs organization within industrial associations, to transform hosted exhibitions into organized ones (direct mgmt), as way to secure business, to create synergies and avoiding event disruptions (e.g. discontinuities, transfers, acquisitions)

> Support to international development of Hosted exhibitions, exploiting FM's international platform

Alliances & Co-location

> Domestic and international alliances with synergic exhibitions in adjacent sectors to reinforce current portfolio of exhibitions, attract international exhibitors and accelerate outgoing international presence

> Aggregation of leading exhibitions and commercial integration to create a single event (e.g. unified ticketing, marketing)

> Health-protecting procedures to mitigate health concerns of national and international visitors and exhibitors

> Most measures already implemented by Fiera Milano together with relevant associations (e.g. AEFI, CFI, UFI)

Safety measures


Strategic phases


Ensure and increase exploitation of the venue

> Attract new hosted exhibitions (e.g. international leading events, B2C) to increase / ensure exploitation of large available surfaces in a likely challenging business environment

> Back-up: re-configuring the venue to enable a re-purposing (e.g. Logistic Platform for eCommerce)

Venue


46

Key initiatives have been identified to foster congress business growth path

> Development of association market focusing on strategic international alliances with convention centers, collaborations with major Agents, specific bid focus on niche sectors and Milan brand promotion

> Development of corporate market focusing on collaboration with international agents, flexibility on pricing policies and customized solutions, data analytics and marketing & promotional events on specific target areas

> Development of other events market (e.g. music, sport, fashion) focusing on addressing new sectors (e.g. Urban and Lifestyle events), utilization of MiCo Lab spaces and more flexible congress offering through the utilization of new spaces in venue to create more targeted solutions

Consolidate and develop positioning in key markets


Strategic phases


> Foster sustainability and safety measures (e.g. certifications, energy efficiency, green energy) to improve FM positioning vs. main competitors

Improve sustainability and safety

> Integration of Pavilions 3-4 of Fiera Milano City in MiCo to improve space optimization, increase venue occupancy thanks to a more flexible congress calendar vs fairs calendar and guarantee social distancing

> Reposition of venue spaces and support to clients for scaling (FM acting as incubator)

Venue integration

> Joint go-to-market with other venues to better match different customer segments' needs (e.g. through alliances, joint venture, partnerships) to enhance portfolio offering, improve market segmentation and develop tailored solutions

Collaboration with other venues for Joint BD

> Development and offering of state-of-the-art digital technologies and cutting-edge solutions to enhance FM attractiveness

Phygital congresses

Congresses


Fiera Milano's annual and biennial exhibitions expected to achieve a positive

double digit growth rate in 2021-25

Italian exhibition revenues breakdown 2021-25 [EUR m]

132

73 92 112 125 137

88

67 34

81 37

95

21

19

20212019

13

8

212

20242022 2023

14

2025

Multi-year

Biennial

Annual

170

220

161139

24511%

Includes EUR ≈ 25-30 m of additional revenues from Services in 2025

CAGR 2021-'251)

17%

7%

19%Biennial, odd years

Biennial, even years

1) CAGR for biennial exhibitions is calculated on a 3-year span for odd years (2021-23-25) and on a 2-year span for even years (2022-24)



06

Back-up –

ESG Strategy and actions

48


49

Specific actions in progress or foreseen to achieve increased environmental

sustainability

1 Environment

> Develop strategic management of environmental sustainability issues to minimize the Group's impact

> Measuring Scope 3 emissions

> All venues connected to the district heating

> LEDs hall lighting in all venues

> Silver LEED certification for the service centre, convention centre and office towers at the fieramilano district; LEED certification for MiCo congress centre

> 100% of electricity produced from renewable sources for MiCo congress centre

> Lauch of plastic-free project for fieramilanocity site and MiCo congress centre

> Micro-filtered water dispensers at the offices of fieramilano district and at the MiCo congress centre

> Compactors for the collection of PET plastic bottle along the central axis of fieramilano site

> Operational plan for the optimization of the waste management process

> Photovoltaic system at fieramilano site

> Green procurement

> Use of recyclable carpet

> Certifications extension

> Crisis Management Plan

> Promotion of sustainable mobility

ESG Strategy and actions - Environment



50

Specific projects/ actions conceived or in progress to increase training,

professional development and safety

2 People / Human Capital

> Enhance human

capital

> Protect the

health and

safety of workers

and all people in

Venues

> Promote

diversity and

equal

opportunities

> Training plan on digitalization for employees

> Work-life balance: flexibility, social clauses, support for family life and parenthood welfare -"WellFair" online platform

> Professional training programs and Next Generation FM

> Great Place to Work ® certification

> Extension of Performance Leadership Management (PLM) plan and inclusion of CSR objectives

> Consolidation of succession and management continuity plan

> CSR awareness and development program for Group employees (Social Responsibility Contest)

> Launch of employer branding project

> Further initiatives on diversity and equal opportunities

> Digital Workplace: APP and Smart working

> Implementation of services to improve quality and greater job security

> Investment in health and safety

> Strengthening the safety culture and implementation of a management system

> Safety Plan

ESG Strategy and actions - People / Human Capital



51

Actions are defined or in progress to improve relationships with external

stakeholders (customers, extended communities)

3 Social

> Promote

sustainability

culture into the

business

> Promote social

and economic

development

> Promote quality

and customer

satisfaction

culture

> Customer Satisfaction Survey for services and own exhibitions through advanced systems

> Implementation of a claim management system to assess services sold and the quality of services provided

> Post-show debriefing process for all events

> Collection of left-over food

> CSR content development for own exhibitions

> Promoting social initiatives in the local area

> Implementation of corporate and social volunteering initiatives in the local area

> Urban apiary at MiCo congress centre

> Gold Healthy Venue certification for MiCo congress centre

ESG Strategy and actions - Social



52

Continued effort to be on the edge concerning fighting corruption and

sustainable supply chain management

ESG Strategy and actions - Fighting Corruption; Human Rights & Sustainable SCM

4 Fighting Corruption

> Develop and

enforce policies

to fight active

and passive

corruption

> Anti-corruption guidelines abroad

> Integrity due diligence for Italian and foreign suppliers

> Training for employees on anticorruption guidelines

> Definition and implementation of further processes such as anti-corruption safeguards

5 Human Rights and Sust. SCM

> Prefer suppliers

fulfilling ESG

criteria

> Continuously

combat

undeclared and

irregular work

> Optimization of

the procedural

framework

> Evolution of supplier qualification process considering fulfillment of ESG criteria

> Memorandum of understanding to prevent and combat undeclared and irregular work

> Reputational assessment and qualification process to Italian and foreign suppliers

> Implementation of the protocol and continuous commitment to combating the phenomenon of undeclared and irregular third-party work, and training on the subject

> Further improvement of supplier monitoring


Thanks for your

attention

Fiera Milano S.p.A.

T +39 01.2345.6789

F +39 01.2345.6789

[email protected]

fieramilano.it

Sede legale: Piazzale Carlo Magno 1,

20149 Milano, Italia

Sede operativa e amministrativa:

Strada Statale del Sempione 28,

20017 Rho (MI)

Registro Imprese di Milano 0123456789

REA MI 0123456

Capitale sociale Euro 0.123.456,00

P. IVA 0123456789

For further information, please contact:

Investor Relations Department

Tel +39 02.4997.7816/7911

email: [email protected]

fiera milano group

Documents